By Merrin Muxlow
For a brand-new business, purchasing decisions can be tough. You know how to do the math- you can plan your budget, crunch the numbers, and compare price quotes- and still end up making purchases that don’t work out as planned. Making decisions about equipment or service purchases isn’t just about the numbers that matter right now- in order to make your choices pay off, you need to consider future needs, too. Here are a few ways to save now…without paying the price later:
1 Buy with growth in mind.
This doesn’t mean that you should invest in equipment you don’t need yet. Start small, but start smart. Install a phone system like VoIP where features and extensions are cheaper and easier to add later on. Invest in an inventory management system that can accommodate expansion. Seemingly small decisions now can help you avoid big replacement costs in the future.
2 Save money on the basics…
Phones, copiers, and keyboards are cheaper- and work just as well- if you buy them used. You can trade in older equipment for credit toward new purchases when you want to upgrade.
3 …but be willing to spend where you need to.
Bargain shopping is great for inexpensive equipment purchases, but when it comes to professional services like web development, drafting corporate documents, or tax preparation, hire a pro. The costs of re-designing a website or paying tax penalties make professional services well worth the initial expense.
4 Do a basic cost versus benefit analysis.
It sounds like a no-brainer to consider how much a purchase will cost/save in terms of time and money, but many business owners don’t consider all costs. How much would sales increase if you accepted credit cards, managed inventory better, or had a more organized website? How much time would you save if you hired someone else to process payroll? If you can’t afford a certain purchase yet, make it your next priority.
5 Negotiate.
Just like purchasing a car, never say yes to the first offer. Ask if a credit card terminal is included in the merchant services contract, if you can get free upgrades on a software package, or other “deals.” Purchase prices are usually more flexible than you might think.
Try to see the long-term picture when making decisions about business services or equipment purchases. Even if you’re starting small, you can still start smart.
About the Author
Merrin Muxlow is a writer, yoga instructor, and law student based in San Diego, California. She writes extensively for Resource Nation, an online resource that provides how-to purchasing guides and other resources for business owners. She is a frequent contributor to several sites and programs that offer tools for new businesses and entrepreneurs, including Dell and BizEquity.
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